The expected reduction in interest rates has subsided, and the week-long build-up of Wall Street layoffs continues.

Last Friday, the US released PPI data, which grew by less than 1% on a year-on-year basis, with an unexpected decline of 0.1% over a three-month period. Interest cuts are expected to revive, with three major US indexes rising throughout the week, and a two-year high. An analysis suggests that the PPI report confirms that the US’s December CPI rebound is likely to be a one-time event, and that the Fed’s path, which began to cut interest rates in 2024 and slowed down the contraction, is still open. According to Barclays economists, judging from this week’s inflation data, the Fed will start cutting interest earlier than they thought it would be in March.

On the important news side of the weekend, according to the press, which quoted a number of American media reports on 13, the leaders of the United States Congress have agreed on a short-term spending agreement to avoid the US government’s “stopping” in the next few weeks. On 19 January, the temporary appropriation bill to provide 20% of US federal government agencies with operating funds will expire. On 2 February, the rest of US federal government agencies will also face “stopping” as funds run out. Under the new short-term spending agreement, the two deadlines for funding government agencies will be extended to 1 March and 8 March, respectively.

However, the new agreement would need to be passed by both Houses of Congress before 19 to avoid the government’s “stopping.” According to reports, the majority leader of the Senate, the Democrat Shumer, said that the text of the agreement was expected to be published on the evening of 14 local time.

As part of the Fed’s monetary policy and control of short-term interest rates, the Fed pays interest to banks, financial companies, and other eligible fund managers to put cash on the central bank’s books. It should be noted that less than two weeks after the start of the new year, America’s silicon Valley’s planned staff reduction has reached more than 5,500.

In addition, the social platform Discord says that 17% will be laid off, the game service provider Unity Software announces 25%, and the language learning application Duolingo states that 10% of full-time employees will be laid off. According to Layoffs.fyi, in 2024, more than 5,500 employees in the US science and technology industry were unemployed.

Apple, on the other hand, will be joining the downsizing wave, and the company will close down an office in Santiago related to artificial intelligence business involving 121 people, many of whom are at risk of being fired. Looking at this week, the global focus will be on the Red Sea crisis, and the US-led coalition has already attacked Yemen’s Al-Houthi armed targets in retaliation for the latter’s more than 20 recent attacks on ships in the Red Sea and Gulf of Aden.

In terms of economic data, China’s GDP data for 2023 and the United States retail sales data for December are the most market-oriented. In an earlier media interview, the head of the Central Treasury said that institutions and experts predicted that China’s economic growth in 2023 would be around 5.2%, with GDP exceeding 126 trillion yuan.

The big banks of the United States share will publish their financial statements, including Morgan Stanley, Goldman Sachs, etc., and analysts predict that PHP 500 index component shares will grow their profits for the second consecutive quarter. Last week, the three shares of the United States share record an increase of 0.34%, an increase of 3.09%, and an increase of 1.84% in the PHP 500 index.

American leaders have agreed on a short-term spending agreement to avoid a government stoppage. According to 13 American media reports quoted in the news, US Congress leaders have agreed on a short-term spending agreement to avoid the US government’s “stopping” in the next few weeks. According to the US media, on 19 January, an interim appropriation bill to finance the functioning of 20% of US federal government agencies will expire. On 2 February, the rest of US federal government agencies will also face a “stop” as funds run out.

According to data released by the US Department of Labor on Friday, the producer price index fell by 0.1% for the third month in a row, and the decline reached a record level since 2020. The so-called core PPI, excluding food and energy, remained virtually flat for the third month. The Fed lost $114.3 billion last year, the largest local time on Friday, January 12. The Fed released its unaudited initial financial statements for 2023.

In 2023, four Wall Street banks recorded net interest income of $253 billion, some $80 billion higher than in 2021. Most banks now believe that interest cuts are coming, while the Fed’s fast-paced interest hikes, with many regional banks suffering, favouring large banks. In 2023, four major banks recorded a combined net interest income of $253 billion, about $80 billion higher than in 2021.